This calculator uses averages based on real statistical data to predict the
future. It not only calculates the result but also demonstrates the
actuarial(statistical) components used to get that result.

What are those factors?
They account for the growth in your salary (assuming average numbers of course)
- 4%;
Your life expectancy
Growth rate of your investments - 8%.

It is similar to our other life retirement needs calculators
with the addition of using existing statistical averages on salary and life expectancy.

How much will you need to retire?

To begin taking charge of the quality of your future, find out how much income
you'll need in retirement to maintain your current standard of living. This
worksheet can help you.

If you're like most Americans, you may have to provide almost half of the income
you'll need for the more than 20 years you may live in retirement.

Retirement worksheet

Input parameters.

Your Plan

Enter your retirement age (at least 55 and no more than 74).

Enter your current age.

Enter your current salary.

Enter the total amount you have saved for retirement up to now.

Retirement worksheet
Four factors from these tables are needed to calculate your retirement income
goal.

Factor table^{*}

Years

Factor A

Factor B

Factor C

Factor D

5

1.17

4.31

1.36

5.87

10

1.42

7.25

2.00

14.49

15

1.73

9.24

2.94

27.15

20

2.11

10.60

4.32

45.76

25

2.56

11.53

6.34

73.11

30

3.12

12.16

9.32

113.28

35

3.79

12.59

13.69

172.32

40

4.62

12.88

20.12

259.06

In this exercise, the numbers ("factors") will be used to project changes in
your income savings over time.

Results

Years until retirement (your current age subtracted from your retirement age).

Your projected salary when you retire (your current salary multiplied by Factor
A. Use the years until retirement to select this factor).

Your retirement income needs, usually around 80% of your final salary.
(Multiply your projected salary by 0.80).**

Your retirement income that will be provided by Social Security and other
sources such as pension plans. On average, 58% of your final retirement income
will be provided by these two sources.* (Multiply your retirement income needs
by 0.58).

Additional income needed during retirment (your retirement income provided by
Social Security and other sources such as pension plans minus your retirement
income needs).

The lump sum you must have when you retire to provide the additional income you
determined above. (Multiply the additional income need during retirement by
Factor B. To select this factor, start with the life expectancy table. Then, in
Factor B, use the closest approximation of this life expectancy to select a
factor).

The value of your current savings at retirement. (The lump sum you calculated
above multiplied by Factor C. Use the years until retirement to select this
factor.)

The additional amount of money you need at retirement to meet your additional
income goal. (The value of your current savings at retirement subtracted from
the lump sum you must have when you retire).

The amount of money you need to save each year to meet you additional income
goal. (Divide the additional amount of money you need at retirement to meet
your additional income goal by Factor D. Use the years until retirement to
select this factor.)

* These figures assume a hypothetical investment rate of 8% and
are based on assumptions for illustrative purposes only; actual investment
returns will vary. Assumes an average salary increase of 4%.

** This percentage, which is used in many projections for
retirement income, assumes a conservative scenario of retirement income needs.

Life Expectancy
for Known Sex in Years

Life Expectancy
for Person in Years.

Ages

Ages

Male

Female

Years

Unisex

Years

40

45

33.8

40

42.5

41

46

33.0

41

41.5

42

47

32.1

42

40.6

43

48

31.2

43

39.6

44

49

30.4

44

38.7

45

50

29.6

45

37.7

46

51

28.7

46

36.8

47

52

27.9

47

35.9

48

53

27.1

48

34.9

49

54

26.3

49

34.0

50

55

25.5

50

33.1

51

56

24.7

51

32.2

52

57

24.0

52

31.3

53

58

23.2

53

30.4

54

59

22.4

54

29.5

55

60

21.7

55

28.6

56

61

21.0

56

27.7

57

62

20.3

57

26.8

58

63

19.6

58

25.9

59

64

18.9

59

25.0

60

65

18.2

60

24.2

61

66

17.5

61

23.3

62

67

16.9

62

22.5

63

68

16.2

63

21.6

64

69

15.6

64

20.8

65

70

15.0

65

20.0

66

71

14.4

66

19.2

67

72

13.8

67

18.4

68

73

13.2

68

17.6

69

74

12.6

69

16.8

70

75

12.1

70

16.0

71

76

11.6

71

15.3

72

77

11.0

72

14.6

73

78

10.5

73

13.9

74

79

10.1

74

13.2

75

80

9.6

75

12.5

76

81

9.1

76

11.9

77

82

8.7

77

11.2

78

83

8.3

78

10.6

79

84

7.8

79

10.0

80

85

7.5

80

9.5

81

86

7.1

81

8.9

82

87

6.7

82

8.4

83

88

6.3

83

7.9

84

89

6.0

84

7.4

85

90

5.7

85

6.9

Disclaimer

The calculators at this site are designed to help
you to understand the issues that need to be considered in determining the
investment option or options suitable for you. However, the calculators should
not be seen as a substitute for professional advice from a financial planner
who takes into account your personal financial circumstances and needs. We
strongly recommend that you discuss your requirements with a qualified
financial adviser, who can take into account your personal financial position
and can help you choose a strategy that suits your own personal circumstances.